Breaking News

Japan Industrial Production Falls 3.3% in June, More Than Estimated
Tweet TWEET

Anglo American PLC AAL Anglo American update re. Platinum

  Anglo American PLC (AAL) - Anglo American update re. Platinum

RNS Number : 8115Q
Anglo American PLC
09 November 2012




                       




9 November 2012















 




Anglo American update re. Anglo American Platinum



Anglo American plc draws attention to an announcement issued by Anglo American
Platinum Limited, the text of which is set out below:









Anglo American Platinum update



Anglo American Platinum Limited ("Anglo  American Platinum" or "the  company") 
is providing an  update on the  ongoing illegal industrial  action around  its 
Rustenburg, Union and  Amandelbult mining  operations. It is  now eight  weeks 
since the  initial safety  suspension and  the subsequent  illegal  industrial 
action by employees.



Anglo American Platinum announced on 18 October 2012 that it had entered  into 
discussions with its recognised unions - NUM, UASA and NUMSA - and the  strike 
committee to explore  options to facilitate  the return to  work of  employees 
involved in  illegal  strike  action.  The status  of  the  12  000  dismissed 
Rustenburg employees also formed  part of these  discussions, though they  did 
not include any wage negotiations.



As a result  of these  discussions, Anglo  American Platinum  announced on  29 
October 2012 its  offer to  facilitate the  return to  work of  the Union  and 
Amandelbult employees and to reinstate all the dismissed Rustenburg employees.
The offer was strictly subject to all striking employees returning to work and
doing actual work activities by no later than 30 October 2012.



The offer comprised a once off "hardship allowance" of R2 000 (net of tax), in
order to assist employees in  dealing with financial difficulties arising  out 
of the 'No Work, No Pay' principle, and a once off "loyalty allowance" of R  2 
000 (net of tax) for  those employees who did  not participate in the  illegal 
strike. In addition, all employees  affected by the no-work, no-pay  principle 
would be afforded an opportunity to apply for a payment advance of up to R  2 
500 which would be  repayable and deductible from  employees' salaries over  a 
six month period  commencing in January  2013. The offer  was not accepted  by 
employees.



On 7 November 2012, management reopened discussions on the return to work with
the recognised unions and representatives of the strike committee. The outcome
of these discussions  is that management  has revised the  initial offer to  a 
once off allowance  of R4 500  (gross of tax)  to be paid  to each  qualifying 
employee, comprising a R2 000 loyalty or hardship allowance and a R2 500  safe 
start-up allowance to be paid two weeks after employees have returned to  work 
and have commenced actual work.



Anglo American Platinum  has further  agreed to  an early  re-opening of  wage 
negotiations. Any agreement reached would, however, only be implemented from 1
July 2013, in line with the current wage negotiation cycle.



If the offer is accepted, the understanding is that employees would return  to 
work on Monday, 12 November 2012, after which date the offer will lapse.



The company currently  does not  have sufficient  employees at  work for  safe 
operations in the affected areas and continues to carry out essential services
only.Anglo American Platinum confirms that it  is losing an average of  3,613 
ounces of platinum production per day and  has lost a total of 167,681  ounces 
of platinum production to date.



The CEO of Anglo American Platinum,  Chris Griffith said, "We have  previously 
stated that the  operations are  under tremendous economic  pressure which  is 
being exacerbated by  the current illegal  strike. The return  to work  offer 
that has been  agreed with the  unions and the  strike committee will  require 
almost R220 million to fund. The workers' current demand of a salary increase
of R4500 per month  would cost approximately R2.6  billion, an amount that  is 
clearly not  affordable  in a  year  when  the company  is  experiencing  such 
economic challenges. We have gone to  great lengths to get our employees  back 
to work and, should this offer not be accepted, the company will have no other
option but  to  confirm the  outcome  of  the disciplinary  hearings  for  our 
employees in Amandelbult and Union and effect the dismissals of the Rustenburg
employees."



Further updates will be provided as appropriate.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCBKCDPPBDDADK -0- Nov/09/2012 16:00 GMT